You always need a printer-scanner-copier. You can go with an inkjet printer or a laser printer....

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You always need a printer-scanner-copier. You can go with aninkjet printer or a laser printer. The inkjet model costs $177 andlasts five years. Replacement ink costs $210, and you will topurchase it at the end of years 1, 2, 3, and 4. The laser modelcosts $430 and lasts 6 years. Black toner for the laser model costs$92 and will need to be replaced in years 2, 4, and 5. Color tonerfor the laser model costs $300 and will need to be replaced inyears 3 and 5. Your paper cost remains the same with either option.Your opportunity cost of capital is 7% APR compounded annually.

What is the NPV of purchasing the inkjet model AND what is theNPV of the laser model?

What is the EAC of purchasing the inkjet model AND what is theEAC of the laser model?

Which type of printer should be purchased?

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Answer 1 and 2NPV of purchasing the inkjet model    See Answer
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You always need a printer-scanner-copier. You can go with aninkjet printer or a laser printer. The inkjet model costs $177 andlasts five years. Replacement ink costs $210, and you will topurchase it at the end of years 1, 2, 3, and 4. The laser modelcosts $430 and lasts 6 years. Black toner for the laser model costs$92 and will need to be replaced in years 2, 4, and 5. Color tonerfor the laser model costs $300 and will need to be replaced inyears 3 and 5. Your paper cost remains the same with either option.Your opportunity cost of capital is 7% APR compounded annually.What is the NPV of purchasing the inkjet model AND what is theNPV of the laser model?What is the EAC of purchasing the inkjet model AND what is theEAC of the laser model?Which type of printer should be purchased?

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